Thrilled to pay your mortgage early? Here’s the home refinance calculator you need

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You are currently viewing Thrilled to pay your mortgage early? Here’s the home refinance calculator you need

Whatever your primary reason for refinancing your mortgage, saving money will always be the result. The thought of being able to pay off your mortgage earlier is exciting! Using a home refinance calculator is vital to understand better how this works.

How does one save money when applying for a home refinance? It will be one or the other and may not be both. You save cash primarily by reducing the monthly payment and secondarily by paying less interest in the long run. Here are the possible scenarios:

  1. Reduce your monthly payment. Reducing your monthly payment will mean that you shave off dollars from your monthly payment, but if you try to calculate it, you pay more interest in the long run because the loan is extended. Reducing your monthly payment is beneficial if money to tight and you can only afford a lesser monthly payment.
  2. Paying for less interest in the long run. If you can increase your monthly payment, or maybe you suddenly experienced a windfall, paying more than the minimum requirement will help you save money by decreasing the term of your loan and paying less interest in the end.

If you are confused, here is where the home refinance calculator will come in handy. It is easy to navigate through our refinance calculator because all you need to do is fill out the figures, and the calculator will do the work for you. You can easily do so without worry if you want to change the numbers, as the home refinance calculator is free.

Refinancing a mortgage can save you money, but be aware that there are fees that you need to prepare for, like application fees, loan origination charges, title search and insurance fees, lender fees, and appraisal fees, among others. These will also be part of the computation in the home refinance calculator.